Up to Lake Palace... All Jamsil 'Elite Repa' Join the 2 Billion Club

Jamsil Area Reconstruction 84㎡ Exclusive Area Sale Price Surpasses 2 Billion KRW
Actual Transaction Price Rises Due to Real Demand Despite Land Transaction Permission Zone Restrictions

Panoramic view of the Resentz Apartment Complex in Jamsil-dong, Songpa-gu, Seoul.

[Asia Economy Reporter Onyu Lim] All five complexes in the Jamsil area of Songpa-gu, Seoul, collectively known as the 'Elite Repa,' have joined the '2 Billion Won Club.' The term Elite Repa refers to Els, Resentz, Trizium, Lake Palace, and Parkrio, which were built through the reconstruction of the low-density Jamsil district in the 2000s, covering the Jamsil and Sincheon-dong areas.

According to industry sources on the 13th, an 84㎡ (exclusive area) unit in Lake Palace, Jamsil-dong, was confirmed to have been traded for 2.05 billion won on the 27th of last month. This is the first time this apartment has been traded for over 2 billion won. As a result, the transaction prices for 84㎡ units in all five complexes in the Jamsil area have surpassed 2 billion won. Among the five complexes, Els and Resentz were the first to break the 2 billion won mark. Both complexes were traded for over 2 billion won in October last year, followed by Trizium in June this year, and Parkrio joined in early last month.

The industry is paying attention to the fact that these record-high prices have been achieved despite the area being designated as a land transaction permission zone. On June 23rd, the government designated Jamsil MICE development project sites, Yeongdong-daero complex development project sites, and their surrounding areas including Cheongdam, Samsung, Daechi-dong in Gangnam-gu, and Jamsil-dong as land transaction permission zones to prevent speculative overheating. In these zones, gap investments?buying houses with lease deposits rather than for actual residence?are strictly prohibited. Consequently, the current housing prices in this area are supported by genuine demand.

However, transactions have sharply contracted. Since the designation of the land transaction permission zone, only 17 apartment transactions in the Jamsil area have been registered on the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system over about 50 days. Considering that 106 transactions were recorded in May, this represents a steep decline.

A representative from a local real estate agency in the area said, "Although apartment transactions in the Jamsil area have slowed since the land transaction permission zone was designated, it seems that transactions at record prices have occurred because the genuine demand base remains solid."